U.S. crude oil futures tumbled again last week with prices dropping below $34/bbl. But many grades that typically sell for a discount to WTI instead fetch a premium, so apparent refining prosperity is a bit overstated. Still, most U.S. plants are doing better than they've done since last April. Spot gasoline on the West Coast moved above $1.80/gal, or some $40/bbl above crude, Other bulk markets were around $1,30/ gal, stretching margins to nearly $20/bbl. Marketers are caught between the rising wholesale price and a stubborn retail market. A $2.00/gal retail price is less of an exception these days, and high-volume sites have little pricing power as that number is approached. Rack-to-retail margins nationwide crept above 8cts/gal last week, but many markets saw pump values at cost.
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